Post Office payments temporary reprieve

Recipients of certain benefits that use Post Office card accounts for incoming payments were supposed to provide alternative bank details to HMRC by 30 November 2021, or risk suspension of payments. The affected benefits are:

• tax credits;
• child benefit; and
• guardian allowances.

This was due to expiration of the contract between HMRC and the Post Office. Thankfully, some common sense has prevailed during what is a busy time of year - both for tax compliance and obvious familial reasons. HMRC has now announced that it has agreed a one-off extension with the Post Office until 5 April 2022.

Whilst this is obviously welcome news for affected individuals just prior to Christmas, it is crucial to update these details via the tax account, or by contacting HMRC’s tax credits or child benefit helpline sooner rather than later.